After listing on the ESB-PME Exchange, existing members of the Exchange are allowed to participate in the SME platform and trade the SME`s share. However, trading on the SME Exchange is limited by the following trading sizes: the issuing company must consult and appoint a merchant banker in an advisory capacity for listing on the ESB-PME Exchange. The ESB SME Exchange was established by the Bombay Stock Exchange (ESB) to provide small and medium-sized enterprises (SMEs) with an equity acquisition platform for their growth and expansion. SMEs are the backbone of a country`s economy and Indian SMEs employ 70 million people through 30 million companies. In 2010, the Prime Minister`s Task Force recommended the creation of a special scholarship for SMEs and SEBI also defined the governance rules for an SME exchange. Based on the above, the BSE SME Exchange was created to enable entrepreneurs to raise equity capital for the growth and expansion of SMEs. In this article, we see how to rate on the SME Exchange ESB with Listing Requirements.tor. The initial public offering (IPO) will be open and closed as planned. Upon completion of the IPO, the company submits the documents in accordance with the checklist to the BSE SME Exchange for completion of the allocation basis. At the end of the invitation to tender, BSE shall adopt the quotation and trade notice.
Has. Together with the request for the use of the name of the Exchange in the offer document, the following documents/information must be provided by the company to the Exchange: after the submission of the application and the documents required in case of BSE, the ESB verifies and processes the documents. A visit to the company`s site is also carried out by BSE stock exchange agents. After the on-site visit, promoters are invited to an interview with the Listing Advisory Committee. The merchant banker would then perform due diligence towards the company, i.e. check the documentation, including all financial documents, essential contracts, administrative authorizations, promoter details, etc., and prepare the documentation for the IPO. Planning and documentation by the Merchant banker must include the IPO structure, share issuances and financial requirements Once the Merchant banker`s due diligence and documentation is completed, the draft prospectus and drHP are sent to the Exchange in accordance with the sebi requirements. After satisfactorily completing the on-site visit and the investigation by BSE officials, BSE shall, on the recommendation of the Committee, issue an authorisation in principle, provided that all the requirements are compiled by the issuing company.
After receiving the agreement in principle, the merchant banker would submit to the ROC the prospectus indicating the opening and closing date of the issue. After receiving the authorisation of the TBR, they shall inform the exchange of the data on the opening of the expenditure and the necessary documents. Listing on the SME Exchange ESB consists of five different steps, namely:. . . .